The benefits of having more than one bank account

Picking the right bank account for your needs can be a confusing and stressful task. Whether you’re paying your bills, saving for a holiday or you're looking for somewhere to keep your everyday spending money, different bank accounts can have different benefits for each. Pounds till Payday, a payday loan company, have some advice for how by using different accounts, you can find the best one to suit your needs.

Everyday

Your everyday account is one of the simpler ones to find. This account can be used for your day to day spending from the big weekly shop to smaller impulse buys. You can also use this one to pay your bills.

Find an account that enables direct debits and standing orders. Most bills you pay, such as gas, electric, phone, internet, will be payable via direct debit. If you arrange for these payments to be made automatically on the day you get paid, it is easy to make sure you don’t fall behind and you can also see how much money you have left for the rest of the month. These accounts will also allow you to set up standing orders to your other accounts so that money for savings or a mortgage can also be automatically transferred on a date of your choice.

Certain accounts will also allow you an overdraft facility to help you ensure you don’t run into financial difficulty and rack up bank charges. Information on how much these cost can easily be found on banks websites so you can shop around. Other bank accounts offer benefits such as cashback on purchases and bill payments so if this interests you, have a look at what each account offers. If you want a contactless card, research which accounts offer these before you commit to one. Contactless technology is available in hundreds of stores now and will be rolled out to all card machines within a few years.

Loans/mortgages

If you’re buying a house or looking for a loan, the bank that runs your everyday account may not be the best place for this. Different banks have different criteria for lending and different interest rates so shopping around for the best deal is essential. Comparison sites can be a huge help and offer impartial advice on the pros and cons of each bank. Some banks still offer guarantor mortgages and springboard mortgages which allow your family to help you buy a house so if you need extra help then these could be the one for you.

Savings

If you’re saving for something big or small, it's important to find the account that offers the best interest and tax free saving. If you’re saving for a house in the UK, the Help to Buy ISA will match your savings so that you can double the amount you’ve put by. This can help you buy your first home and get yourself on the property ladder.